Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      DStv's high entry price is killing subscriber growth, says Canal+

      DStv’s high entry price is killing subscriber growth, says Canal+

      12 March 2026
      Standard Bank IT bill tops R14-billion as software spending shifts

      Standard Bank IT bill tops R14-billion as software spending shifts

      12 March 2026
      Illegal streaming crackdown nets arrests, convictions in Cape Town

      Illegal streaming crackdown nets arrests, convictions in Cape Town

      12 March 2026
      Vodacom claims African first with 254Mbit/s 5G uplink test

      Vodacom claims African first with 254Mbit/s 5G uplink test

      12 March 2026
      UCT astronomers uncover vast hidden supercluster behind the Milky Way

      UCT astronomers uncover vast hidden supercluster behind the Milky Way

      12 March 2026
    • World
      Musk launches Macrohard in cheeky nod to Microsoft - Elon Musk

      Musk launches Macrohard in cheeky nod to Microsoft

      12 March 2026
      Europe is building an alternative to Microsoft Office

      Europe is building an alternative to Microsoft Office

      11 March 2026
      Microsoft bets on Anthropic as it loosens ties with OpenAI

      Microsoft bets on Anthropic as it loosens ties with OpenAI

      10 March 2026
      World hit by worst oil shock since the 1970s

      World hit by worst oil shock since the 1970s

      9 March 2026
      iStore prices MacBook Neo at R11 999 in South Africa

      Apple debuts MacBook Neo to challenge Windows PCs, Chromebooks

      5 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » The trouble with Sony

    The trouble with Sony

    By Editor16 May 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Sony blamed "hacktivist" group Anonymous for the PSN hack

    The PlayStation Network (PSN) is finally spluttering back to life after a three-week coma. Now begins the process of evaluating exactly how much damage the outage has done to Sony’s PlayStation console business, writes Lance Harris.

    The data breach, described as one of the most serious of all time, and the resulting network downtime are serious enough on their own. But following on a series of blunders that have made Sony look arrogant and out of touch since the launch of the PlayStation 3, the incident is nothing less than a disaster.

    The missteps, big and small, that Sony has made this console generation are the stuff of legend and Internet memes. The company launched the PS3 at least a year late and with a US$599 price tag that didn’t even cover the cost of manufacturing a unit. It glibly dismissed criticism of the console’s price by saying that customers would take a second job to pay for the PS3 if they had to.

    Other problems quickly piled up in the console’s launch window, ranging from the absence of vibration feedback in its controllers through to a lack of compelling exclusive games for the first two years of the PS3’s life and programming headaches for developers working on the complex system.

    At the heart of nearly every one of the PS3’s woes was Sony’s decision to cram it with expensive, exotic technologies such as the Cell processor and the Blu-ray disc format. Desperate to drive revenues for its film studio and consumer electronics businesses, Sony made a huge group-wide bet on a media format.

    Sony thought Blu-ray would be as important to and as successful for the PS3 as CD was for the original PlayStation and DVD for the PS2. It underestimated how quickly consumers would move to online services and overestimated the value they would see in Blu-ray as an upgrade from DVD.

    While the PS3 ensured that Blu-ray became the dominant standard for high-definition films, it was a Pyrrhic victory that has cost Sony billions of dollars as well as a huge loss of console market share.

    Sony got left behind by Nintendo, which was innovating around the user interface with its motion control scheme, and Microsoft, which was dragging consoles online with its Xbox Live service.

    Sure, the PS3 hasn’t fared as badly as the Sega Dreamcast or even Nintendo’s Gamecube. And with 50m unit sales, the PS3 lags the Xbox 360 by only 4m or so units worldwide, despite launching a year later. Games software sales are relatively brisk and Sony is making some money off Blu-ray royalties, movies and players after its victory in the format wars.

    Yet a product that turned a market-moving company into an also-ran can’t be described as a great success. With the PS2, Sony forced Sega out of the hardware business, sold about three times as many consoles as Microsoft and Nintendo combined and commanded a market share of nearly 70%.

    To defend this market share, Sony basically just needed to show up on time with a semi-decent product that people could afford to buy. Indeed, the Xbox 360 may not have gained traction if Sony hadn’t allowed it to have the market to itself for a year in the US and Japan and nearly 18 months in Europe.

    Sony is slowly bringing the PlayStation Network back online

    And then this, an attack on Sony’s network that left customers unable to download content or play online games on their PS3s and that may have exposed information for some 80m accounts to the hackers. Games developers who support online gaming and sell content through the PSN have potentially lost millions of dollars during the downtime.

    Characteristically, Sony’s initial reaction to the hack was an injured beast’s bellow of rage rather than to express concern for its customers and business partners. Though Sony has since announced a “welcome back” package for gamers inconvenienced by the network outage, it will struggle to regain their trust.

    How Sony allowed its systems to be compromised so thoroughly and destructively is hard to understand. The company knew it was a target after Anonymous, the hacker vigilant group, took the PSN down with a denial of service attack a few weeks before in reprisal for Sony’s legal battle with hacker GeoHot about his attempts to jailbreak the PS3.

    A mixture of complacency and inexperience with online services probably explains in part why Sony botched its network security so badly. The PSN feels like an afterthought compared to the slick, rich features of Xbox Live and has clearly suffered from underinvestment in the past five years. Will the fallout of the data breach give Sony a new appreciation for the importance of the online world to its future?

    Follow TechCentral on Twitter

    Next month’s Electronic Entertainment Expo (E3) in Los Angeles may hold some answers. Sony needs to use the expo to restore developer and fan faith in the PS3. Rather than pushing 3D to try and sell more televisions, Sony needs to focus on the stuff gamers care about.

    Compelling new game announcements and a price cut may help to restore Sony’s tarnished reputation with consumers. But more importantly, Sony needs to show that it is as serious about online services as it is about hardware and software. In the world of Steam, Xbox Live and iTunes, the ecosystem matters more than the device. Accepting that fact will be hard for a company as invested in consumer electronics, music and movies as Sony.

    Wounded corporate pride pricked Sony into building its PlayStation business in the early 1990s after a technology sharing deal with Nintendo went sour. Hubris has so far proven to be its undoing with the PS3. But perhaps the network outage will be the dose of humility it needs to get back to being a great gaming company.  — Lance Harris, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    PlayStation Network PSN Sony
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVodafone launches sub-$130 smartphone
    Next Article Jeans-clad Uys talks up big changes at Vodacom

    Related Posts

    Nvidia's RTX 5090 GPU in already as rare as hen's teeth

    Global GPU shortage set to deepen gaming industry woes

    27 February 2026
    Valve's Linux console takes aim at Microsoft's gaming empire

    Valve’s Linux console takes aim at Microsoft’s gaming empire

    13 November 2025
    AI to replace line judges at Wimbledon

    AI to replace line judges at Wimbledon

    11 June 2025
    Company News
    How AI is changing the way we work - Angela Ho, Obsidian Systems

    How AI is changing the way we work

    12 March 2026
    Domains.co.za introduces complete domain protection service

    Domains.co.za introduces complete domain protection service

    12 March 2026
    Mitel launches Edge platform for mission-critical on-premises communications

    Mitel launches Edge platform for mission-critical on-premises communications

    11 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    DStv's high entry price is killing subscriber growth, says Canal+

    DStv’s high entry price is killing subscriber growth, says Canal+

    12 March 2026
    Standard Bank IT bill tops R14-billion as software spending shifts

    Standard Bank IT bill tops R14-billion as software spending shifts

    12 March 2026
    Illegal streaming crackdown nets arrests, convictions in Cape Town

    Illegal streaming crackdown nets arrests, convictions in Cape Town

    12 March 2026
    Vodacom claims African first with 254Mbit/s 5G uplink test

    Vodacom claims African first with 254Mbit/s 5G uplink test

    12 March 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}